Audiohighway.com Files for Chapter 11
Music site audiohighway.com (www.audiohighway.com), announced on Thursday thatit filed for Chapter 11 in the Northern District ofCalifornia bankruptcy court. The company said it stillmaintains a small technical and operations staff.
Trading in audiohighway's stock was haltedyesterday by Nasdaq.
Just two weeks ago, another music site, Musicmaker.comsaid it was closing down and liquidating. In November 2000, audiohighway said it was cuttingback its business and laying off a substantial portionof its workforce. The company said in a statement thatthe current market conditions forced it to declarebankruptcy.
Due to a dramatic downturn in the financial marketsand in particular, the company said, the marketfor Internet companies, audiohighway was unable toattract sufficient additional financing to maintainnormal operations. After the reduction in workforce,audiohighway continued to pursue strategicalternatives, but to date none have materialized.Therefore, audiohighway finds it necessary to seekbankruptcy protection.
Audiohighway said it anticipates filing a plan ofreorganization to restructure its debts in the nearfuture.